JSW Energy Limited (JSWENERGY.NS) Earnings Call Transcript & Summary

I now request the 13th speaker shareholder, Mr. Dinesh Gopaldas Bahtia, to unmute the audio, switch on the camera and ask the question, please.

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First to Chairperson, Mr. Sharad Mahendra Ji, up to entire team [Foreign Language]

[indiscernible] wrap up, please?

And big company confidence in progress in execution of LED growth strategy or to build a sustained level energy ecosystem, investment in energy storage and supply chain [Foreign Language]

May we request to wrap up, please?

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I now request the 14th speaker shareholder, Ms. [ Shovana Sudir Mehta ], to unmute the audio, switch on the camera and ask the question, please.

Can you hear me?

Yes, Madam.

Respected Chairman, [Foreign Language] I'm wishing you all the best for the future success. [Foreign Language]

We now request the 15th speaker shareholders, [ Mitab Harit Shah ], to unmute the audio, switch on the camera and ask the question, please. Yes, Madam, you are audible. You may please proceed.

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I now request the 17th speaker shareholder, Mr. Manoj Kumar Gupta, to unmute the audio, switch on the camera and ask the question, please. Mr. Manoj Kumar Gupta?

My name is Manoj Kumar Gupta. I've joined this meeting from my resident City of Kolkata. I feel proud to be a shareholder of JSW Group. First of all, I wish you a very wonderful happy new year 2026. And I wish to God to give you more success, happiness and the smile in coming time under the leadership of Mr. Sajjan Jindal with a team of management. [Foreign Language] [indiscernible] and for next 5 years So we peoples of [ Bengal ] are very happy to hear the view of yourself and our beloved Chairman. [Foreign Language] to keep in view his contribution in the field of steel sector after independence. [Foreign Language] when do you expect to complete the entire process? When do you expect to complete your -- increase the capacity of windfall energy and greenfield energy, sir? [Foreign Language] So when do you expect to complete the entire process? And I strongly support all the resolutions. And thanks to the company secretary and the team to help us to join this [indiscernible] of people should be in the corporate sector that they can help the people, small shareholders. And so keep continue the video meeting so that you are in Mumbai. We are in Kolkata. We can see when and you can -- we can hear your voice and we can hear -- you can hear our voice. So keep -- continue because this credit goes to our beloved Prime Minister for inspired that digitalization. [Foreign Language] So we convey our best wishes to our beloved Chairman and his son, Mr. Pat Jindal. More success, sir.

I -- the 18th speaker shareholder, Mr. Anil Babuba Medda is currently not available in the meeting. I now request the 19th speaker shareholder, Mr. Bimal Kumar Agarwal, to unmute the audio, switch on the camera and ask the question, please. Mr. Bimal Kumar Agarwal?

Can you hear me?

Yes, Yes.

my question was already raised by the other speakers. I got no question to add and I already proposed all the regulation for the same. I don't want to waste your time because [ I'm shareholder 19 ] and then it will go on. Wish everyone in the team a Happy New Year. That's at all for me. And please continue video conference in future, so people from all over the world can join because they want physical -- don't have physical meeting. Continue with online meeting. That's all from me.

The 20th speaker shareholder, Mr. Tamal Kumar Majumdar, is currently not available in the meeting. I request the 21st speaker shareholder, Mr. Sofina Rangwala, to unmute the audio, switch on the camera and ask the question, please.

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Very good. Very good. I wish you well. I wish you a very happy new year. [Foreign Language]

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[Foreign Language] She's a very hard-working company secretary. [Foreign Language] Please give a small get together. [Foreign Language]

The next speaker shareholder, Mr. Jevan, is currently not available in the meeting. I now request 23rd speaker shareholder, Mr. [indiscernible], to unmute the audio, switch on the camera and ask the question, please.

Am I audible?

Yes, sir, please proceed.

Respected Chairman, actual Directors and members of management, I hope this -- I hope everyone is in good health. It is a pleasure to interact with you once again. And I'm sincerely thankful to all, company secretary for this opportunity. I have placed all my unconditional support for all the resolutions proposed today. With the same [indiscernible], I request the management to consider supporting, especially able professionally qualified shareholders by providing suitable opportunities. I'm [indiscernible], and I would be really grateful if I could be considered for certification audit, including from [ 15 CB ]. With this, I hope I conclude my submission. Thank you, and please take care of your health. It will appreciate it if you can provide your ID where I can reach you regarding this matter.

We now request 24th speaker shareholder, Mr. Yashpal Chopra, to unmute the audio, switch on the camera and ask the question, please.

Am I audible?

Yes, sir, you're audible. Please proceed.

Let me try and make camera. I think -- yes. Good. Yashpal Chopra, shareholder from Delhi. I'm really very much lucky that I am a shareholder of this group. Virtually, I'm holding all the companies of OP Jindal Group, and as regard to this company, I can say, I would rather compliment the directors, the dynamic directors with a visionary approach and with a great project that is that of a renewable energy and because this energy is the soul of the economic development of the country. And I -- and my leader, our Prime Minister, he wants to take our company to the -- to make it the first number in industrialization and all that. And this energy is the soul of all the industry, and our company is just dedicated for the growth of energy sector, whether it is a thermal or the renewable or solar or it is wind, so -- coal or it is a petrol. So all kind of energies are the vital. I can say that is just like a breadth in a human body. So this is a great thing that you have chosen this project. And as per the resolutions today, you are imparting in liquidity in the entire system, this liquidity shall be a big strength for the expansion of the company. So I am very much proud of, and I have already voted for the resolutions by showing my hand and all that. And I see that the coming time, [ final companies are excellent ]. As regard the split of the share that was spoken by Mr. [indiscernible], I will say that you just wait for another 1 year. Let the share price cross [ 1,000 ]. Only then you go for [indiscernible]. There should not be any hurry because this is just a when you must concentrate on the expansion and strengthening of the company, and this is the vital need of the [indiscernible]. So my blessings, my -- all that are with you. And I would say that let this 2026 be a blissful year for the company, for the management, for the audience because last year was a very cruel year. So we have just passed through a very, very cruel time. Now I expect the positive time will be coming ahead. So as regards the demand or the better demand of the shareholders as speakers, I think the management should be liberal enough to consider that. And as regards the demand, by Mr. [ Bersani ], a write-off, I fully support that because we would like to contribute and do that thing, sir. And we will request you to maintain this video meeting because a person who should come in Delhi or in the other corner of the world, he can join it only by the video method. So before I wind up, I will definitely bless our company secretary, our CFO, our Chairman of the meeting; and entire dynamic management over there because they are having a very, very sound project and they are the dedicated members of the company, and they are taking our company to the new heights. So I pray God for the positivity for the entire team, for my company and best of luck to you for the time coming ahead.

25th speaker shareholder, Mr. Gundoro Redapa, is currently not available in the meeting. I now request the 26th speaker shareholder, Mr. Rajan Rajamnadas, to unmute the audio, switch on the camera and ask the question, please.

Hello?

Yes, sir, you are audible. Please proceed.

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The next speaker shareholder, 27th speaker shareholder, Mr. Santosh Chopra, is currently not available in the meeting. I now request 28th speaker shareholder, Mr. Sharat Jira Aisha, to unmute the audio, switch on the camera and ask the question, please.

Hello? Hello?

Yes, sir, you are audible. Please proceed.

Madam, my number was [ 29 ]. Now you have put it on 28, I'm very happy. Now it is 12:00, so it is good afternoon, sir. And I wish happy New year. Sir, my name is Sharad, same as you. Not as the Sharad Kumar. Sir, I fully support all the 4 resolutions mainly because the [ purchaser ] is giving me [ INR 525 ] per share and market was yesterday [ INR 510 ] So why should I not support this resolution, all the resolution?. I'm very happy, sir. And what is my brief thing is that, first, 1 and 2, we are collecting INR 3,000 crores at the price of [ INR 525 ]. And out of that, we are spending INR 700 crores for our loan, which is of the order of INR 3,279 crores, which is okay, because our balance money you must be keeping for other good purpose. And another thing, what I observed, sir, is that resolution #3, also I support basically because you are looking for all sorts of development that you are in the field of hydrogen, renewable, thermal and so many things. So you want money for that, and you are looking for development, and you want to raise another INR 10,000 crores so that you can -- and I definitely think that if companies will be raising INR 10,000 crores is not an issue. And another thing, last, that fourth resolution you are talking about is about a related party and related party is Toshiba. I fully support. And because of the one fellow who says that this particular project is coming in West Bengal, so I personally feel, please review whether we should continue with West Bengal. That is my clear view. And I support all the resolutions, and I'm happy with Monica Chopra because I know her from Siemens when she was trainee there.

29th speaker shareholder, Prakashan Ganesan, is currently not available in meeting. I now request 30th speaker shareholder, Hariram Choudhary, to unmute the audio, switch on the camera and ask the question, please.

Now unmuted and camera is off. Let me put on camera also. Why is it off? Now it is on. So Chairman [indiscernible] the directors. My name is Hariram Choudhary. I'm speaking from [indiscernible] Bombay. First of all, I'm a shareholder of all the companies of [indiscernible] Jindal and I appreciate the services and [indiscernible] that Monica and other executive staff members are maintaining. [indiscernible] I would like to mention his name also. And so I appreciate that. I also appreciate the shareholder number given by the moderator in addition to the name of the speaker. So all these, I appreciate. Now my suggestion is that let there be a dedicated mobile phone in the secretary department so that we can question from time to time and we can maintain first of all [indiscernible] the members of the executive staff. Monica Ji, I would like to have your number after the meeting [indiscernible]. I've been sending to all the company secretaries. I would like to send the question from time over the year. Now another suggestion is that have a get together if the Chairman is not here, but let make me get together of the speaker shareholder. We can meet [indiscernible], particularly and this can be done. Next suggestion is that wish the meeting is in hybrid and physical. This is done in high court. This is done by large [indiscernible]. This is done in my own company where I'm a director and the [indiscernible]. Please do hybrid in future also. Now Mr. Chairman, just one mention I would like to note, [indiscernible] Chairman of this company. Sajjan is also Chairman of [indiscernible] Steel, higher shares of INR 90,000 in my wife's [indiscernible] and my name and joint name and [indiscernible] not got a share. Through you, Mr. Chairman and to Monica, I will request that [indiscernible] and the company executives to see that my shareholders are in me, the Government of India [indiscernible] please get your shares immediately. They are also helping us. So please do that. And Chairman, let us know whether we are adopting all the latest technology. Please let us know. And with this, I conclude. My name is Hariram from [ Santa Cruz ], Bombay.

With this, we have completed with the speaker shareholders, and I hand over back to the Board for further proceedings, please.

Yes. I thank you for the keen interest shown in your company and also the suggestions made. I will now like to answer your queries. Maybe some of the questions I will just read. There was first question which came about the response from the secretarial team. I can assure you that secretarial team is doing very good work in -- has been in regular constant touch with all of you. But in case there is a gap, I assure you that those gaps will be filled and there will be even a better communication with all of you. Then I will just come to few -- some of the questions that someone asked -- one of you asked about the promoter stake. Before this event and after this, I would like to say that before this meeting, the event, the promoter stake had been 69.26% and after the issuance of these pref shares and the warrants, this will increase by 0.98%, taking it to 70.24%. Then there was also a question that why not a right issue. I would like to say that all the available options were evaluated. Rights issue is something which is time-consuming. Not sure of the subscription levels. It's a costly affair and also that in line with the needs of the organization, the funds required based on the timings, Board decided that this is the best option to bring in the capital. So this is what was decided to do instead of the rights issue. Some of you have asked for a mixed reply coming in physical AGM or hybrid. We will definitely explore. I understand people from outside have -- coming for physical meeting is a challenge. But in case if there is any possibility to have a hybrid model, definitely the secretarial team will explore, and then we will decide on that, whether we can go for the hybrid AGM. One question which came was that why the profit was less in quarter 2. Here, I'd like to say that [indiscernible], your company is in a expansion mode, growth mode, a lot of capital investment is being made. And even in the H1, April to September period, whatever investments have been made and the assets -- new projects commissioned or acquired, we have to understand that we invest everything, but those assets have not given us the earnings. So it is always better that during the year, any capital investment, which is coming in, results in interest and depreciation payments and everything. But maybe a year forward, this investment is going to be giving the full returns, so annualized basis, if you see to your company is doing extremely well at the EBITDA level, repaying the interest and the depreciation. So it is a temporary phenomenon that the profit is less. It is only -- this is a normal phenomenon for any organization. [indiscernible] a fast growth phase. Another question, which was that is related to this fund raise, key process completion time. Process completion time, I will say that there is -- in 2 parts. This fund raise of INR 3,000 crores is there. One is in the form of equity, which is INR 500 crores, and another is INR 2,500 crores in warrant, out of which 25% of the warrant, which is INR 625 crores, plus the equity, which I said earlier, INR 500 crores, will be immediate once the resolutions are approved and the voting gets completed. And once it is, this fund will come immediately. Balance, 75% of the warrant will come over a period of 18 months, and this is in line with the needs of the company as and when the capital required. So it has been planned like that. Another thing which was asked was about the capacity completion plan. [indiscernible] in my opening remarks, I have said that we have a plan of reaching 30 gigawatt of generation capacity and 40 gigawatt hour of storage capacity,by FY '30. We are well on track or [Foreign Language] 13.3 gigawatt commission capacity [Foreign Language] we have said that by end of FY '26, we will be in the range of 15 gigawatt operational capacity. [Foreign Language] FY '30, [ 30 ] gigawatt generation or 40 gigawatt hour storage projects, we are well on track on that. In addition to that, earnings per share, [Foreign Language] fund raise will enable to further improve the earnings per share. [Foreign Language] free cash of INR 6,181 crores [Foreign Language] plus cash profit, [Foreign Language]. That is INR 3,090 crores, 3-0-9-0 crores cash profit. [Foreign Language] we are very, very well equipped. [Foreign Language] 50% of the proceeds [Foreign Language] will be used for repayment or prepayment of the debt or balance [indiscernible] 1,500 crores [Foreign Language] economic growth rate, power demand key growth rate last 5 years, India, say, more than double. [Foreign Language] investment is a very sound -- safe and sound investment. Last, [Foreign Language] there is a dedicated department [Foreign Language] or live performance of all the assets will be there [Foreign Language] whether it is artificial intelligence or [indiscernible] digitization, automation [Foreign Language]. Thank you very much. [Foreign Language] so my request is please write to the secretarial department, [indiscernible], you will definitely be getting a reply to that. Thank you very much. And this brings us to the end of the question-and-answer session. My sincere thanks to you, all of you. On behalf of the Board of Directors, I thank the members for attending and participating in this extraordinary general meeting. And I announced the meeting has closed subject to e-voting on all the business by way of insta poll and declaration of consolidated results of e-voting and e-voting by way of insta poll. Thank you very much. [Foreign Language]